"Murray is very good, he's one of the most talented players on tour," Nadal told the Australian Open Web site when quizzed about their upcoming meeting.

"He can play offensive, he can play defensive. He can do a lot of things during the same match ... He's a very important player."

On Saturday, Roger Federer booked his place in the last 16 of the Australian Open after a routine straight sets win over Spain's Albert Montanes to set up a match with home favourite Lleyton Hewitt.

The world number one was relatively untroubled as claimed a 6-3, 6-4, 6-4 victory over Montanes and felt his serve proved to be crucial factor in the victory.

"I thought it was dominated from my side with my serve, which allowed me then to take chance on the return," Federer told the Australian Open Web site.

"It was a pretty straightforward match, really. I don't remember him having any breakpoints. He was playing tough from the baseline and making it hard. I'm happy with the match and was able to serve it out, so it was good."

Federer will now turn his attention to Australian Hewitt who led Marcos Baghdatis 6-0 4-2 before the Cypriot was forced to retire with a shoulder injury.